Mondelez Turns to Generative AI to Cut Marketing Costs by Up to 50%

Mondelez (MDLZ, Financials),The company that makes Oreo and Cadbury is using generative AI to change the way it makes advertising and other digital marketing materials. The company said that the new AI tool, which was built with help from Publicis Groupe and Accenture, may lower production costs by as much as 50%.

Jon Halvorson, global senior vice president of consumer experience, said Mondelez has invested more than $40 million in developing the system, which it hopes will eventually produce ready-to-air video ads. The first TV spots could arrive by the 2026 holiday season and may be used in the 2027 Super Bowl.

The company has already deployed the technology for online marketing, including Chips Ahoy promotions in the U.S. and Milka chocolate in Germany. One Milka campaign uses AI-generated visuals that adapt to different audiences, replacing costly animations that can run into hundreds of thousands of dollars.

Mondelez plans to extend the rollout to Oreo and Lacta in Brazil and Cadbury in the UK later this year. The tool will also support U.S. product pages for Oreo on Amazon and Walmart beginning in November.

Mondelez claimed it is not employing computerized human likenesses in its ads, even though competitors like Kraft Heinz and Coca-Cola are trying out AI in their ads. Employees will keep checking all AI-generated content to make sure it follows business rules that say you can't show bad behaviors or stereotypes.